B2B BNPL Provider Hokodo Launches Shopify Integration

B2B buy now, pay later (BNPL) provider Hokodo has launched a new plug-in for use by B2B merchants that have webstores on the eCommerce platform Shopify.

Now available to Shopify merchants in the United Kingdom, France, Spain, Belgium and the Netherlands, the plug-in enables these merchants to offer instant credit terms to eligible business buyers — deferring the payment by up to 60 days — while still getting paid upfront and being protected from risk, Hokodo said Tuesday (Oct. 11) in a press release.

“Our new Shopify integration has been designed with the merchant experience in mind and can be installed in just a few steps with no development work required,” Hokodo Co-Founder and Chief Technology Officer Sami Ben Hatit said in the release.

In practice, when business customers visit the merchant’s Shopify store and choose the BNPL option at checkout, Hokodo’s application programming interfaces (APIs) run real-time eligibility checks based on the buyer’s credit score and fraud risk and then allow those who are eligible to select the payment terms and settlement method, according to the release.

The merchant receives payment when delivery of the goods is confirmed, while Hokodo handles the collections process and Lloyd’s of London protects merchants against non-payment, the release stated.

“Sellers who offer Hokodo’s deferred payment solution at the checkout have seen an uplift of 40% in conversion rate and a 30% increase in basket size,” the company said in the release. “Meanwhile, business customers benefit from the opportunity to ‘buy now, pay later’ on their purchases, ultimately promoting healthier cash flow for both parties.”

Hokodo’s proprietary tech, credit and analytics stack, which the company uses to source its own data and create its own credit scores, enables it to offer trade credit to the 40% of U.K. firms that should be eligible for it but are refused access by other providers, Hokodo CEO Louis Carbonnier told PYMNTS in an interview posted in August.

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“Having this ability to segment various companies in a country with a lot of granularity and isolate the pockets that are eligible for payment terms is a good way to bridge the financing gap in the economy and alleviate the liquidity issues that suppliers and buyers might face,” Carbonnier said.

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